This workshop is an introduction to pensions for those with little or no previous pensions knowledge, working either in a pensions role or an allied business area where pensions knowledge would be advantageous. Our expert panel will talk through the essentials of the pensions industry.

For over forty years, the Pensions Management Institute has provided its members and wider society with information and insight, regarding pensions and employee benefits through its regular events, seminars and our member magazine.

Lots of savers around the world don't engage with pension communications, particularly those that have been automatically enrolled. The approach's use of inertia means that these savers tend to have lower levels of awareness and engagement compared to those who made an active decision to start saving in a scheme.

Researchers have become focused on the challenge of how to engage pension savers, and in recent years a lot of progress has been made. One idea is to time pension communications more effectively so the message reaches the saver during important life events when they're believed to be more receptive.

NEST Insight, along with Maastricht University and Netspar, recently conducted a series of in-depth interviews, and a survey with NEST members, to find out more.

AP2 sticks with strategy despite diving returns

SWEDEN - AP2, the second Swedish national pension fund, is standing by its equity-bias despite a sharp -15% plunge in asset values last year.

Capital values totalled SEK117.1bn (E12.8bn) at December 31st 2002 compared with SEK133.5bn at the start of the year. Net inflows were SEK5bn. The fund marginally outperformed its benchmark by 0.4%. The Gothenburg- fund blamed the worst global markets for over 70 years for the result. Some leading exchanges across Europe, Asia and the US fell by around 23% last year.

In particular, AP2 was hit by a -38.6% dive in the OM Stockholm Stock Exchange in which AP2 invests around 20% of its assets. But chief executive officer, Lars Idermark, was confident that the fund’s current investment strategy would prove profitable in the long-term. It is naturally deeply dissatisfying to have to report such a sharply negative result,” he said.

Nevertheless, our investment strategy is extremely long-term, and we are therefore determined to pursue it all the way. This means that our portfolio will continue to consist of approximately 60% equities and 40% fixed-income instruments.

“All analyses indicate that this composition promises the best return when operating with an investment horizon of between 10 to 15 years.

This is the worst return posted by AP2 since its inception in January 2001. So far, the fund has failed to post a positive annual- or half yearly return.

AP2 is to continue to activate parts of its portfolio. The fund recently appointed 13 new external investment managers to its roster. It added that once the diversification of the bond portfolio was complete certain portfolios would be externalised, including high-yield bonds.

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Collective defined contribution (CDC) schemes will need clear and transparent governance frameworks, as well as effective communication strategies, to be a success, the Work and Pensions Committee (WPC) has been told.